The June issue of Human Resources featured our article on the role of HR in ESG reporting and sustainability. During the ESG reporting process, the HR function is often absent until the later stages of the information gather process, which left its role passive and undefined. Apart from complying to reporting requirements including disclosing related KPIs such as total workforce and turnover, the HR cannot dismiss the need for integrating human capital information with corporate strategies and actions. Sustainability issues such as talent acquisition, gender diversity, occupational health and safety, as well as retaining younger employees especially millennials have increasingly become unavoidable risks which come into the attention of the management, investors and other stakeholders.
Developing ESG competencies is crucial for HR practitioners to exert influence in the reporting process. After understanding how each part of the business contribute to the reporting process, they will be able to facilitate change within the organization, driving innovative solutions and building internal awareness on sustainability. Aligning ESG with the United Nations Sustainable Development Goals (UNSDGs), and aligning ESG initiatives with employee targets and rewards are some of the tools to be utilized by HR practitioners.
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